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Factsheet for measure HU-2020-10/653 Updated – measures in Hungary

Relief of tax on labour for certain target sectors affected by COVID-19

Munkát terhelő adók elengedése a koronavírus járvány által érintett szektorokban

Country Hungary , applies nationwide
Time period Temporary, 01 March 2020 – 31 December 2021
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial)
Author Nóra Krokovay (KOPINT-Tárki) and Eurofound
Measure added 15 April 2020 (updated 15 June 2022)

Background information

Under Sections 3-5 of the government decree 47/2020 (18 March) a selected group of businesses will receive relief from certain types of taxes in the months of March-June 2020 (extended into 2021 with modifications of the govt decree 485/2020 which specifies benefitting sectors). The reason for the measure is specified in the title of the decree: “Immediate measures necessary to alleviate the impacts of the COVID-19 pandemic on the national economy.” The main objective is to help employees working in sectors that are hard-hit by the pandemic. In the period of the intervention companies will not pay social contributions after their workers and employees will not have certain taxes deducted from their pay.

Content of measure

Employers will get relief from paying all kinds of tax on labour and employees will be exempt from all taxes excluding health contributions in the months of March-June 2020. Businesses eligible are those active in the following sectors: tourism, catering, entertainment, gambling, film industry, live performance, event organiser and sports activities. Self-employed and microcompanies paying the KATA flat tax for small entrepreneurs will be exempt from the tax in the period of March to June 2020 in the sector of passenger land transport services (taxi services).

Businesses subject to tourism development contributions will also get relief from this payment from March to June 2020. Employees will pay no more than the minimum amount in health contribution of HUF 7,710 per month.


The following updates to this measure have been made after it came into effect.

09 June 2021

Based on govt decree 318/2021 (VI.9.), tax relief, tax deferral or tax rescheduling may be requested if proof is provided that the taxpayer is in financial hardship due to COVID-19. Relief can be up to 20% of the tax due but no more than HUF 5 million (€13,889) per year. A deferral is for a maximum of 6 months, rescheduling for installments over 12 months maximum. The measure is in effect until 31 December 2021.

28 March 2021

Government decree 485/2020 was amended several times to extend the tax relief for the months of December 2020, January, February, March and April 2021.485/2020. (XI. 10.) effective 10 Dec 2020 extended for Dec, Jan 485/2020. (XI. 10.) effective 30 Jan 2021 extended for Feb 485/2020. (XI. 10.) effective 28 Feb 2021 extended for March 485/2020. (XI. 10.) effective 28 March 2021 extended for April The list of sectors benefitting was extended to include 56 different sectors: NACE 5610, NACE 5621, NACE 5630, NACE 5914, NACE 8230, NACE 8551, NACE 9001, NACE 9002, NACE 9004, NACE 9102, NACE 9104, NACE 9311, NACE 9312, NACE 9313, NACE 9319, NACE 9321, NACE 9604, NACE 9329, NACE 5510, NACE 5520, NACE 5530, NACE 5590, NACE 7911, NACE 7912, NACE 4939, NACE 4719, NACE 4743, NACE 4751, NACE 4754, NACE 4759, NACE 4761, NACE 476203, NACE 4763, NACE 4764, NACE 4765, NACE 4771, NACE 4772, NACE 4777, NACE 4778, NACE 4779, NACE 7722, NACE 7729, NACE 7990, NACE 9200, NACE 9521, NACE 9523, NACE 9524, NACE 9525, NACE 9529, NACE 9602, NACE 9609, NACE 477601, NACE 5629, NACE 8553, NACE 8559, NACE 8560.

26 November 2020

Businesses with a main activity in the following economic areas will be exempt from certain taxes for the single month of November 2020, as specified under government decree 485/2020. The businesses are mainly in the catering, live performance, sports, recreation and personal services sectors. Tourism (accommodation) is excluded from this group, as they have different subsidies assigned. The tax-exempt activities are: NACE 5610, NACE 5621, NACE 5630, NACE 5914, NACE 8230, NACE 8551, NACE 9001, NACE 9002, NACE 9004, NACE 9102, NACE 9104, NACE 9311, NACE 9312, NACE 9313, NACE 9319, NACE 9321, NACE 9604, NACE 932.

Use of measure

The Hungarian statistical office KSH said that a monthly average of 194,000 employees (and their employers) benefitted from the tax relief in the March-June 2020 period. Most of them worked in accommodation, catering, arts and recreation, IT and communication and administrative services sectors. Statistical office data show that 428,000 people work in the tourism industry and 80,100 in the entertainment industry in 2019. Catering and accommodation together employed 186,800 last year.

Target groups

Workers Businesses Citizens
Applies to all workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
Company / Companies
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Informed Informed
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Unknown


Social partners had no say in this measure.

Views and reactions

Trade unions submitted proposals, but their views were not heard, no real consultation took place.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      H - Transportation And Storage H49 Land transport and transport via pipelines
      I - Accommodation And Food Service Activities I55 Accommodation
      I56 Food and beverage service activities
      J - Information And Communication J59 Motion picture, video and television programme production, sound recording and music publishing activities
      R - Arts, Entertainment And Recreation R90 Creative, arts and entertainment activities
      R91 Libraries, archives, museums and other cultural activities
      R92 Gambling and betting activities
      R93 Sports activities and amusement and recreation activities

This case is not occupation-specific.


  • 18 March 2020: Government decree 47/2020 (EN)
  • 23 March 2020: Trade unions: measures of solidarity with employees needed (joint statement) (
  • 10 November 2020: Government decree 485/2020 (English)
  • 09 June 2021: Government decree 318/2021


Eurofound (2020), Relief of tax on labour for certain target sectors affected by COVID-19, measure HU-2020-10/653 (measures in Hungary), EU PolicyWatch, Dublin,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.